Broker Name: Maybank Research Pte Ltd
Date of Report: January 13, 2026
Excerpt from Maybank Research Pte Ltd report.
Report Summary
- Soon Hock Enterprise (SHOCK SP) is a leading specialist in industrial property development in Singapore, with a strong track record of over 900 units sold in the past decade and significant upcoming projects in Tampines and Tuas.
- The group is well positioned for near- to medium-term profitability, supported by a robust project pipeline, stable recurring income from master-leased properties, and a clear capital return framework with a target dividend payout of 25% for FY25E–FY26E, implying an attractive dividend yield.
- Soon Hock’s ongoing and upcoming developments, including Stellar@Tampines and Skye@Tuas, are expected to drive strong profit and revenue growth, with FY26E net profit forecasted to rise by 38% year-on-year to SGD47.2 million.
- The company’s user-centric development approach and strategic site selection cater well to end-user needs and are expected to maintain strong demand and sales momentum.
- Risks include exposure to the cyclical Singapore industrial property market, reliance on debt financing, interest rate volatility, and potential challenges in collecting progress payments from purchasers.
- Valuation is based on a 30% discount to RNAV, resulting in a target price of SGD0.75, representing a 20% upside from the current share price.
- Active share buybacks by the Executive Chairman and the company’s dividend policy reinforce management’s commitment to shareholder value creation.
- The group’s balance sheet is expected to strengthen, with gearing projected to fall significantly as projects are completed and profits are realised.
- Management has deep industry experience, positioning Soon Hock to benefit from long-term trends such as Singapore’s growth as a logistics and high-value manufacturing hub.
- Soon Hock’s competitive strengths include its strong market position, effective capital management, and adaptability to Singapore’s evolving industrial property landscape.
Above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can be the first to access the full report from the Maybank Research Pte Ltd website: https://www.maybank.com/investment-banking
